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JAIIB AFM MARATHON 4
What is the primary objective of the Cash Reserve Ratio (CRR) as a monetary policy tool?
CRR requires banks to maintain a certain percentage of their Net Demand and Time Liabilities (NDTL) as cash with the RBI, enabling the central bank to control liquidity and credit expansion in the economy.
What is the formula for calculating Return on Equity (ROE) for a bank?
Net profit divided by shareholders' equity, expressed as percentage.
What does the Statutory Liquidity Ratio (SLR) mandate banks to maintain?
SLR requires commercial banks to maintain a specified percentage of their NDTL in the form of liquid assets such as cash, gold, or approved government securities before providing credit to customers.
What is the meaning of 'Substandard Asset' under RBI's NPA classification?
Asset remaining NPA for less than or equal to 12 months.
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